Wegman Case Essay

1070 words - 5 pages

Team
 2:
 Whole
 Foods
 Presenta8on,
  NBA
 5330
 Management
 Cases
  2/18/2013
  Kevin
 Bell,
 Jen
 Cohen,
 MaE
 De
 Paolo,
 Sarah
 Hu,
 Aashish
 Sharma
 

Whole
 Foods
 should
 acquire
 Wild
 Oats
 and
 increase
 its
 product
 offerings
 to
  enable
 lifestyle
 shopping
 and
 maintain
 its
 leadership
 posi:on
 

Whole
 foods
 currently
 is
  the
 leader
 in
 the
 natural-­‐ food
 retail
 chain
 and
 the
  fastest
 growing
 company
 in
  the
 grocery
 market
 

•  Natural
 food
 segment
 growing ...view middle of the document...

E.B
  Kroger’s
  Costco
 

Traders
 Joe
  Safeway
  Low
 Cost
 

Low
 #
 of
 SKU’s
 
Summary strategy Consumer segments Competition opportunities Conclusion

US
 Natural
 Food
 offerings
 are
 being
 penetrated
 by
 conven:onal
  stores
 that
 offer
 non-­‐natural
 foods
 as
 well
 

2003
  50%
  50%
 
US
 Food
 Retailing
  Business
  US
 Natural
 

Conven8onal
 Store
 Format:
  Kroger's,
 Albertson's,
  Safeway,
 WalMart
  Specialist
 Health
 &
 Natural
  Product:
 
 Whole
 Foods,
 Wild
  Oats,
 Trader
 Joes
 

Since
 1991,
 conven8onal
 store
 sales
 of
 natural
 foods
 have
 
 moved
 from
 7%
 
  to
 50%
 market
 share
 
Consumer segments

Summary

strategy

Competition

opportunities

Conclusion

Within
 the
 value
 chain,
 the
 retail
 segment
 offers
 the
 best
 margin
  and
 poten:al
 for
 expansion
 

Lower
 margins
 

Distributors
 

Opportuni:es:
 Limit
 supplier
 power
 in
 a
 highly
 consolidated
  industry
 through
 backward
 integrate
 and
 reduce
 delivery
 8me
 of
  perishable
 goods
 by
 elimina8ng
 the
 middle
 man
  Limita:ons:
 Could
 threaten
 rela8onship
 with
 current
 distributors
  by
 becoming
 their
 compe8tors
  Opportuni:es:
 
 Display
 social
 responsibility
 that
 consumers
  will
 buy,
 differen8ate
 and
 redefine
 themselves,
 increased
  demand
 from
 customers
  Limita:ons:
 Taking
 8me
 to
 learn
 organic
 process
 standards
  Opportuni:es:
 Thought
 leadership
 in
 the
 industry,
  influencing
 more
 stringent
 
 regula8on
 standards
 

Producers
 

Retailers
 
Higher
 margins
 
Consumer segments

Limita:ons:
 Will
 poten8ally
 create
 new
 challenges
  in
 mee8ng
 this
 standards
 and
 finding
 producers
 or
  distributors
 who
 meet
 them
 as
 well
 

Summary

strategy

Competition

opportunities

Conclusion

Whole
 Foods
 faces
 challenges
 from
 alterna:ve
 channels
 such
 as
 conven:onal
 
  grocers
 and
 discount
 stores
 due
 to
 lower
 pricing
 and
 convenience
 factors
 
  Conven8onal
  Grocers
  Discounters/
  Warehouse
 Clubs
  Neighborhood
  Delicatessens
 
 
•  More
 diverse
 offering
 of
 product
 categories
  •  Easier
 access
 to
 the
 periphery
 of
 organic
 consumers
 

•  Low-­‐cost
 opera8ng
 structures,
 limited
 SKUs
  •  Larger
...

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